RCL pet food factory

RCL Foods prepares for a big move into premium pet food

Over the next 18 months RCL Foods will construct a R100m pet-food factory in Randfontein. Gauteng, in a bid to steal market share from premium international brands.

The investment by the the food and consumer brands group that owns Rainbow Chicken, Selati Sugar and Nola Mayonnaise, is part of the group’s broader strategy to invest in the growth brands it acquired when it took over Foodcorp in 2013.

RCL already has a range of dog foods under the Epol and Molatek units. Bobtail, says the company, is SA’s largest dry dog-food brand. There has been growth in its more up-market brands, namely Optimizor, Ultra Dog and Canine Cuisine.

“We see big opportunities in the premium pet-food industry, as well as in the broader pet-food category,” says RCL Foods CE Miles Dally.

The premium dog-food segment is an area where RCL believes it can take market share from some of the big-name international products such as Hills Science Diet and Eukanuba Premium Pet Food, says Dally.

There is a trend of increased “pet humanisation” in SA, says research group Euromonitor International in a recent report on the pet-care industry.

“Pets were traditionally perceived to be animals that required little attention and help in their general upkeep,” it says. “These attitudes are changing, with more owners regarding pets as part of their families, leading to greater spending on their general upkeep, including products such as toys and health care, as well as dietary supplements.”

South Africans are expected to continue to spend on their “fur babies” despite the country’s stressed economy, according to Euromonitor.

The weaker rand and rising interest rates will put pressure on “emotionally invested” pet owners who buy premium imported nutrition, and a highly rated local premium brand seems an obvious opportunity.

Source: Financial Mail